Chapter 10 Site Selection RETAIL MANAGEMENT: A STRATEGIC APPROACH, 10th Edition BERMAN EVANS

Chapter Objectives To thoroughly examine the types of locations available to a retailer: isolated store, unplanned business district, and planned shopping center To note the decisions necessary in choosing a general retail location To describe the concept of one-hundred percent location

Chapter Objectives (cont.) To discuss several criteria for evaluating general retail locations and the specific sites within them To contrast alternative terms of occupancy

Chapter 10 discusses steps 2-4 Overview Step 1: investigate alternative trading areas (Chapter 9) Step 2: determine what type of location is desirable Step 3: select the general location Step 4: evaluate alternative specific store sites Chapter 10 discusses steps 2-4

Three Types of Locations Isolated Store: Freestanding retail outlet Planned Shopping Center Unplanned Business District

Isolated Stores Advantages No competition Low rental costs Flexibility Good for convenience stores Better visibility Adaptable facilities Easy parking Disadvantages Difficulty attracting customers Travel distance Lack of variety for customers High advertising expenses No cost sharing Restrictive zoning laws

Isolated Stores Large-store formats Wal-Mart Costco Convenience stores 7-Eleven

Figure 10-1: Site Selection and Target

Unplanned Business Districts Secondary Business District Central Business District Neighborhood Business District String

Figure 10-2: A Revitalized Central Business District

Figure 10-3: Unplanned Business Districts and Isolated Locations

Planned Shopping Centers Advantages Well-rounded assortments Strong suburban population One-stop, family shopping Cost sharing Transportation access Pedestrian traffic Disadvantages Limited flexibility Higher rent Restricted offerings Competition Requirements for association memberships Too many malls Domination by anchor stores

Figure 10-4: Eaton Centre, Toronto

Table 10-1a: Characteristics of Centers

Table 10-1b: Characteristics of Centers

Table 10-1c: Characteristics of Centers

Figure 10-5: Festival Walk, Hong Kong

Figure 10-7: Location/Site Evaluation Checklist

Pedestrian Traffic The most crucial measures of a location’s and site’s value are the number and type of people passing by.

Parking Considerations Number and quality of spots Distance of spots from stores Availability of employee parking Price to charge customers for parking

How Many Parking Spaces? Shopping centers = 4-5 spaces per 1000 square feet of gross floor space Supermarkets = 10-15 spaces per 1000 square feet of gross floor space Furniture stores = 3-4 spaces per 1000 square feet of gross floor space